If you see fewer auto repair shops near you then you are witnessing a trend that is spreading throughout the auto repair industry. The small independent auto repair shop is getting squeezed by both the dealers along with the ‘backyarders’ creating shrinking margins and putting many auto repair independents out of business.
The global problem could be the auto repair and service market has been shrinking in the last 10 or 15 years. Technology has made cars much more reliable with fewer breakdowns, repairs and scheduled maintenances.
Many manufacturers offer at least one 100,000 mile warranty particular person yourself the independent will get little chance to operate that car for site to website 5-10 years it is owned.
As new car sales margins have gone down, VW, Chevrolet, Toyota and other manufacturers are seeking to their service departments to make in the difference.
Additionally many dealers such as Porsche and Saab are adding other value added benefits such as the loaner car while repairs are being made. Independents are now being forced to give courtesy rides to customers in trying to keep up with the dealers since customers now expect this service.
Furthermore dealers with regard to Mercedes and Ford are now directly offering specials on services making their dealer prices comparable to independent repair shop prices.
But it’s as well as competitive pricing that’s the worrying the independents.
The battle for skilled labor may also be won by the dealers: the dealers have always competed for skilled labor and will have become significantly more aggressive. With fewer individuals entering significantly repair profession and opting instead for careers regarding example health and technology, fundamental talent pool of the top skilled auto technicians is shrinking.
Increasingly around the globe becoming more difficult for independents to work with and retain these competent employees. A great automotive technician, would you rather appeal to Audi or Joe’s House?
The dealers are selecting the best ‘mechanics’ or as they may be known today, ‘technicians.’ An excellent end dealer technician actually make $100,000 yearly with benefits while wages shop owner would require gross over a $1,000,000 one year to make that as well as have to obtain their own benefits and social basic safety.
Because the hands down economic realities many independent owners are currently closing their shops on and on to work with GM, Nissan and other dealers.
This puts the independent auto mechanic shop at a distinct disadvantage when diagnosing and repairing difficult drivability, fuel injection, electronic and computer related injuries.
Additionally, is not diagnosis is made and a portion needs replacing the dealer will buy it in stock, not only verifying the verification but greatly speeding increase the repair and also increasing customer care. Big advantage Cadillac and Bmw.
But it’s not only a skilled employee war. Techs cannot fix cars without information and you will find a long and ongoing dispute between the dealers/manufacturers and independents over technical information access and diagnostic applications.
The manufacturers claim that the technical information is proprietary in terms of independents claim the information should accumulate to anybody that owns or fixes that make of car.
Excel Auto Repair & Sales
94 E Falmouth Hwy, East Falmouth, MA 02536
(508) 444-2777